CB&I has announced its financial results for Q1 of 2018.
- 78% increase in net income compared to Q1 2017
- Solid operating performance in Fabrication Services, Technology, and E&C groups – including no material charges on Cameron LNG, Freeport LNG, and Calpine power projects
- Cost reduction program and higher-margin mix yield gross margin improvement of 170 basis points versus Q1 2017
- 12% reduction in sales and administrative expense versus Q1 2017
- Company engaged in high level of bidding activity, with attractive prospect list for 2018
- Combination with McDermott International expected to close in May, subject to the receipt of CB&I and McDermott stockholder approvals and satisfaction of all other closing conditions
The company reported a net income of US$43.9 million, or US$0.43 per fully diluted share, for Q1 2018. These results are consistent with the preliminary results released by the company on 12 April 2018.
The results for Q1 2018 mark a significant improvement from Q1 2017. Q1 2017 net income was recorded as US$24.7 million, or US$0.24 per fully diluted share.
President and Chief Executive Officer Patrick Mullen said, "We are pleased with the strong execution across all three of our operating groups, relative to the year-ago quarter, which resulted in a 78% increase in net income. Our results reflect an increase of 170 basis points in gross margin due to a higher margin mix and the benefits of our US$100 million cost reduction program, which was fully implemented as of the end of 2017. The cost reduction program also contributed to a 12% decline in selling and administrative expense."
Mullen continued, "We are also pleased to report an attractive prospect list for 2018. We are engaged in a high level of bid activity, and we expect customer investment decisions to be forthcoming on a number of very large projects in LNG, petrochemical and other markets. As we drive improvements across our business, we are also working toward an expected completion of the combination with McDermott in May of this year."
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/24042018/cbi-releases-q1-2018-results/